We all know that the Economic Impact Payments will be giving us $1,200 per adult and parents get $500 for each dependent under age 17. (subject to income limits)
That leaves out anyone 18 and older, who can still be claimed as dependents on another person’s tax return.
A taxpayer is allowed to claim a full-time student between the ages of 19 and 24 as a dependent, so the parent will not get $500 for a college student, nor can the college student generally claim $1,200. Also anyone supporting adults with disabilities and elderly dependents also will not qualify for the additional $500 check!
Furthermore, the you have to have filed a tax return to get your $1,200. Many low income and senior citizens currently don’t file, they are not required to do so. The IRS is saying that they now have to file basic information to get their checks.
While on the topic of college students, I hope parents know how to get the maximum American Opportunity Credit by claiming the right “Qualified Educational Expenses” on their returns and letting the student show the most “scholarship income” on their returns
Did you change bank accounts since your last tax filing? If so the Treasury will build a web site to allow you to make this adjustment.
The IRS has a new web site dedicated to the details of the Coronavirus Tax Relief, https://www.irs.gov/coronavirus